Hints and tips:
...An increase in a country’s REER means its imports are getting cheaper, but exports are becoming more expensive....
...One caveat here is that Capital Economics calculates REERs based on differentials in producer price inflation, which Mr Jones said can give smaller valuation gaps than REERs based on consumer price inflation...
...Here's Natixis to help you along:where Xt represents the following sets of variables and their optimal lags behind: i/ net disposable income, ii/ the sterling real effective exchange rate (REER), iii/ London...
...The Mexican peso and Czech koruna have also seen chunky gains in REER terms....
...It is not in good company: the only currencies more expensive in REER terms are those of Venezuela, Syria and Yemen, where official exchange rates bear little relationship to those faced by the bulk of the...
...Three are published REER indices (that of the Brazilian central bank, JP Morgan’s REER index using consumer prices and JP Morgan’s REER index using producer prices)....
...According to the Bank for International Settlements’ real effective exchange rate (REER) data, the Korean won is one of the most overvalued currencies in REER terms....
...However, while Mr Saliba agrees the pound is trading at historically low levels by REER standards, he argues that fair value may be weaker than backward-looking models might suggest, given that the elasticity...
...The TRY, for example is now back to 2003 levels on a REER basis....
...It is true that the changing REER (real effective exchange rate) in some EM currencies between 2013 and 2015 may have provided a cushion of value to certain economies....
...Even allowing now for the depreciation in late 2015, and early 2016, taking the ruble to RUB75.50:USD1, in REER terms we still seem some way from REER parity with oil at say USD30 – i.e. a REER level of...
...And this is in an environment when most emerging markets have seen intense downward currency pressures – taking many to their lowest REER values over the last 20 years....
...“After three to four years of REER [real effective exchange rate] depreciation, we think we might now be within a year or two of the bottom,” he says....
...It expects it to fall another 28 per cent in REER terms before finally turning the corner in April 2017....
...Analysts at BBH say that, with most emerging market currencies sharply weaker this year, China’s stable currency “and appreciating REER stuck out like a sore thumb”....
...Devaluation will cause short-term pain, but it will rebalance, at a stroke, the unrealistic real effective exchange rate (REER) with which Greece is saddled within the eurozone....
...The Swissie is 9 per cent above its REER average of the past 10 years. The Swiss National Bank will deliver its March policy decision on Thursday....
...Haruhiko Kuroda said the yen’s real effective exchange rate (Reer), which adjusts for inflation and trade patterns, was very weak, and that it was hard to see the currency falling further....
...b) Let us also not forget that China’s Real Effective Exchange Rate (REER), as calculated by the BIS, has risen by some 14% in the past year, today’s 2.0% drop pales into insignificance, please see attached...
...Past patterns of ruble REER dynamics and the evolution of imports suggests that for every 1% change in REER imports change by approximately 3%....
...Basic econometrics suggests that each 1pp appreciation in the REER reduces underlying export growth by c.¾pp after about 5-6 months....
...In case of a sterling zone, we assume that the GBP REER depreciates 1% in the Bearish scenario and 0.5% in the Central scenario to reflect the fiscal concerns related to the dissolution....
...Since then, the currency war has gone strangely quiet as, in REER terms, the Brazilian real has given up almost half of its gains....
...must also be aware that a weaker currency could help the corporate sector to overcome its liquidity problems and regain some of the competitiveness lost over recent years due to the steady rise in the REER...
...The REER has appreciated by 30 per cent since June 2005, when China de-pegged its currency from the dollar. Over the past year, the REER has appreciated by 5 per cent....
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